Bonferroni Weighted Logarithmic Averaging Distance Operator Applied to Investment Selection Decision Making

Victor G. Alfaro-Garcia, Fabio Blanco-Mesa, Ernesto León-Castro and Jose M. Merigo
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Victor G. Alfaro-Garcia: Facultad de Contaduría y Ciencias Administrativas, Universidad Michoacana de San Nicolas de Hidalgo, Gral. Francisco J. Múgica S/N, C.U., Morelia 58030, Mexico
Fabio Blanco-Mesa: Facultad de Ciencias Económicas y Administrativas, Escuela de Administración de Empresas, Universidad Pedagógica y Tecnológica de Colombia, Tunja 150001, Colombia
Ernesto León-Castro: Faculty of Economics and Administrative Sciences, Universidad Católica de la Santísima Concepción, Av. Alonso de Ribera 2850, Concepción 4030000, Chile
Jose M. Merigo: Department of Management Control and Information Systems, School of Economic and Business, University of Chile, Av. Diagonal Paraguay, 257, Santiago 8330015, Chile

Mathematics, 2022, vol. 10, issue 12, 1-13

Abstract: Distance measures in ordered weighted averaging (OWA) operators allow the modelling of complex decision making problems where a set of ideal values or characteristics are required to be met. The objective of this paper is to introduce extended distance measures and logarithmic OWA-based decision making operators especially designed for the analysis of financial investment options. Based on the immediate weights, Bonferroni means and logarithmic averaging operators, in this paper we introduce the immediate weights logarithmic distance (IWLD), the immediate weights ordered weighted logarithmic averaging distance (IWOWLAD), the hybrid weighted logarithmic distance (HWLD), the Bonferroni ordered weighted logarithmic averaging distance (B-OWLAD) operator, the Bonferroni immediate weights ordered weighted logarithmic averaging distance (B-IWOWLAD) operator and the Bonferroni hybrid weighted logarithmic distance (HWLD). A financial decision making illustrative example is proposed, and the main benefits of the characteristic design of the introduced operators is shown, which include the analysis of the interrelation between the modelled arguments required from the decision makers and the stakeholders, and the comparison to an ideal set of characteristics that the possible companies in the example must portray. Moreover, some families, particular cases and brief examples of the proposed operators, are studied and presented. Finally, among the main advantages are the modeling of diverse perspectives, attitudinal characteristics and complex scenarios, through the interrelation and comparison between the elements with an ideal set of characteristics given by the decision makers and a set of options.

Keywords: logarithmic averaging operators; distance measures; immediate weights; Bonferroni means; OWA operators (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2022
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